On Friday, Hellenic Bank announced half-year results that met analysts ‘expectations, showing an after-tax profit of € 17.7 million over a period that met analysts’ expectations. Profit before tax was € 22.3 million. Revenue for the first half was € 188.6 million.
The bank also responded to analysts’ concerns about weak assets, with a non-performing loan ratio (NPE) of 19.8%. The NPE coverage ratio was 58.3% as of June 30, 2020.
Net interest income for this period was 140.5 million euros, capital adequacy was stable at 22.2%, and the liquidity coverage ratio was 487%.
New lending increased significantly, reaching 439 million euros. The ratio of net loans to deposits was 42.1%, which, according to the bank, will expand the business.
“Activities in certain sectors are showing signs of recovery,” said Fivos Stasopoulos, interim CEO of Hellenic Bank.
“Our 5 billion euro cash flow is being invested and we are building on our experience with securities investments. We have 3 billion euros in Cyprus government bonds and a large amount in European securities. We are constantly trying to invest our money, ”said Kremer.
“New loans are growing and we expect to receive $ 900 million in loans to a viable business that can use the money by the end of the year,” says Kremer.
Kremer said the loan suspension scheme is not expected to continue beyond the first nine months. The Bank expects these loans to begin repaying regularly at the end of the suspension period.
“We have imposed a moratorium on loan repayments for 21,000 clients on loans worth € 2.8 billion and the bank participates in all other government subsidy schemes aimed at financing the economic recovery,” Stasopoulos continued.
“We remain committed to our strategic goals and transforming the bank into a modern customer-centric organization, offering superior products and services, the highest level of service and a smooth operation to our clients,” added Stasopoulos.